In recent years, procurement has become a key business function in many organizations. Without procurement, many organizations would not be able to operate. But what exactly is procurement? Procurement involves making sure that all goods and services required for business purposes are properly acquired. This could be anything from raw materials to office supplies to advertising.

Direct procurement refers to the process of purchasing materials, goods, or services that are directly incorporated into a final product or service offering. Essentially, these are the raw materials and components that a business requires to manufacture its products. For instance, a car manufacturer would directly procure items like steel, rubber for tires, or electronic components.


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Indirect procurement, often overshadowed by its direct counterpart, deals with obtaining the resources that keep an organization running day-to-day. Given its broad spectrum, effective management necessitates specific strategies.

Importance: Unlike direct procurement which often follows a structured purchase process, indirect procurement can be more decentralized. This can sometimes lead to oversight or ad-hoc spending.

Importance: Indirect procurement is a cross-departmental function. Without proper internal coordination, there could be duplication of efforts, overspending, or even conflicting activities.

Implementation: Promote inter-departmental communication. Regular meetings, centralized procurement dashboards, or even a dedicated liaison for larger organizations can help ensure everyone is aligned. Understanding the needs and constraints of each department can lead to more accurate forecasting and more strategic purchasing decisions.

Accurate inventory management can help in predicting future product demand. This forecasting allows procurement teams to make timely and appropriate purchasing decisions, ensuring that materials are available for production when needed.

Holding excessive inventory ties up capital and increases storage costs. Efficient inventory management ensures that procurement for direct materials aligns closely with production needs, minimizing stock levels without risking stockouts.

Understanding the time it takes for suppliers to fulfill orders (lead time) is crucial. Effective inventory management, coupled with lead time insights, can guide procurement teams on when to place orders to avoid production disruptions.

Direct and indirect procurement play pivotal roles in the overall spend management of an organization. Understanding these procurement types and their nuances can help companies optimize their expenses and improve profitability.

With our procurement solutions, transform your procurement process into a proactive, impact-driving function with real-time spend visibility and centralized context around all spend. Strategically prepare your organization for growth through automation and smarter purchasing processes.

People often mistake purchasing for procurement and vice versa or use the terms interchangeably. These are, however, quite distinct operations. Purchasing, in a nutshell, is the final stage of simply ordering goods. Procurement, on the other hand, is made up of many steps before and after purchasing, including research, sourcing, negotiating, supply chain management, transport & logistics, budgeting, project management and installation.

However, as our procurement team work so closely with interior designers, they know and understand how important the aesthetic, details and quality are for a design scheme and are super sensitive to protecting the integrity of that, while staying laser focussed on delivering competitive FF&E packages within budget and timescales.

Accounting is a crucial part of the procurement process and fundamental to the success of a project. We work with real-time, cloud-based software and create customised reporting and financial coding systems so that our clients always have visibility of the project status and their new, tangible assets at every step in the process.

Getting the right products landed on-site, on budget and on time is really what the procurement process is all about. With projects all over the world, at OCCA we have a network of established global logistics partners we work with regularly, providing a seamless service that covers everything from transport planning, cargo insurance, customs clearance, warehousing and inventory management for our projects.

Regularly voted one of the most satisfying parts of the job by Team OCCA, on-site installation is where all the hard work and attention to detail of the procurement process comes together. At this stage, we deploy our dedicated installation team who will plan, manage, and oversee all aspects of the FF&E & OS&E installation, including positioning, inspecting and snagging all items, ensuring they are ready for handover.

By working with an independent FF&E procurement consultant or specialist, you will save both time and money while gaining the invaluable experience, supply chain and project management skills that a professional consultant will bring to your project. An FF&E specialist will help you quickly identify your brief and budget, they will then bring their trained and experienced eye to your scheme, and zone into your requirements. Leveraging all their network, contacts and industry knowledge they will ensure that your project is completed without abortive costs, on time and on budget, leaving you to get on with your day job.

Ironically, whilst it may seem better to access suppliers and dealers directly and bypass an FF&E procurement consultant, many of these suppliers offer their products exclusively via a dealer, who will then add a sizeable margin to the product. An experienced FF&E firm like OCCA can cut through those layers and costs. By leveraging our purchasing power across multiple projects and sectors, we achieve economies of scale with suppliers that deliver much better pricing and enhanced services for our individual clients. The combination of this and our turnkey service deliver significant value to the project.

Government procurement or public procurement is the procurement of goods, services and works on behalf of a public authority, such as a government agency. Amounting to 12 percent of global GDP in 2018,[1] government procurement accounts for a substantial part of the global economy.

To prevent fraud, waste, corruption, or local protectionism, the laws of most countries regulate government procurement to some extent. Laws usually require the procuring authority to issue public tenders if the value of the procurement exceeds a certain threshold. Government procurement is also the subject of the Agreement on Government Procurement (GPA), a plurilateral international treaty under the auspices of the WTO.

Government procurement is necessary because governments cannot produce all the inputs for the goods they provide themselves. Governments usually provide public goods, e.g. national defense or public infrastructure. Public goods are non-rival and non-excludable, which means that one individual's consumption does not diminish the quantity or quality of the commodity available to others, and individuals cannot be prevented from freely consuming the commodity, or "free-riding". Consequently, private markets cannot provide public goods. Instead the government provides those goods and finances them by raising taxes from all citizens.[2]

In order to provide public and merit goods, the government has to buy input factors from private companies, e.g. police cars, school buildings, uniforms etc. This process is called government or public procurement.

Government procurement regulations normally cover all public works, services and supply contracts entered into by a public authority. However, there may be exceptions. These most notably cover military acquisitions, which account for large parts of government expenditure, and low value procurement.[4] The GPA and EU procurement law allow for exceptions where public tendering would violate a country's essential security interests. Additionally, certain politically or economically sensitive sectors, such as public health, energy supply or public transport, may also be treated differently.[5]

Government procurement involves a high risk of corruption because of the great size of financial turnover and the complexity of many procurement processes in which businesses interact very closely with politicians and civil servants. Often the personal interests of the public officials are not the same as the interests of the public. The vulnerability of public buyers to private subversion has led every country to restrict the discretion of procuring entities in what they buy and pay. But while the regulation of the private sector empowers public officials and enables them to extract bribes in exchange for regulatory relief, the regulation of government constrains public officials. Public procurement regulations reduce the discretion of buyers, typically with the intent of reducing corruption.[6]

Public e-procurement stands for replacing various phases of public procurement with electronic means. Purpose of using e-tools is reducing administrative costs by automation. E-procurement can also mitigate some barriers to entry for smaller suppliers, consequent increase of competition can reduce price of procurement.[8]

The large buying power of the public sector has led to the consideration of using public procurement as a stimulus to foster innovation. The activities of public procurement and innovation intersect in three specific areas: public procurement for innovation, public procurement of innovation, and innovative public procurement.[9] First, multiple studies have established that public procurement for innovation is a viable and efficient tool to stimulate innovation as a demand - side tool in the innovation policy mix.[10] Second, public procurement may also be used to innovate the public sector itself (public procurement of innovation), through the inclusion of "innovativeness" as a procurement goal (often as a secondary criterion).[11] Third, novel procurement approaches (such as eProcurement or Public-Private Partnerships) may be introduced to innovate public procurement processes and entities.[12][13] ff782bc1db

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